Probe into sugar scam in Sindh: Two suspects charge-sheeted for fraud, money laundering

KARACHI: Concluding preliminary investigation into a multi-billion sugar scam in Sindh, the Federal Investigation Agency on Tuesday charge-sheeted two suspects for fraud and money laundering.

The suspects were arrested by the FIA’s commercial banking circle earlier this month during a countrywide crackdown against the sugar mill owners and dealers allegedly involved in the artificial increase in the commodity’s price.

The charge sheet, submitted in the court of Judicial Magistrate Dur-e-Shahwar, said that the investigators discovered 16 WhatsApp groups in which the sugar mill owners, brokers and dealers colluded as a mafia to manipulate the market and dishonesty, minting Rs110 billion. It said that the suspects hoarded the sugar and spread lies about its impending shortage, hence raising its price. It said that suspects played Satta (price-fixation scheme) on the commodity.

“The sugar stocks were lying unsold or sold/unlifted in the mills and the demand-supply gap of the essential commodity was ‘artificial’,” the report said. “Meanwhile, the ex-mill price of sugar went from Rs69 to Rs90 in March.”